Section 6.11

FINANCE COMMITTEE OPERATING PROCEDURES

Operating Procedures

1. PURPOSE AND SCOPE

The Finance Committee is a standing committee per the Society Bylaws.  This SOG is intended to provide a set of guidelines for the Finance Committee to carry out its fiduciary responsibility to the membership and in support of the Vision of the Society.  From time to time, the Finance Committee, through the Vice President-Finance will work across the Society organizational structure to secure the proper stewardship of assets, budgets, etc. 
 

Responsibilities of the Finance Committee include: 
Oversees the Development of the Society’s annual budget: 

  • Establishes budget guidelines;
  • Consolidates and reviews the annual operating and capital budgets;
  • Proposes operating and capital budgets to the Board of Directors for approval.

Evaluates the Society’s financial position, proposed budget exceptions and Board Designated / Development Fund Spending and makes recommendations to the Board of Directors on these matters;

  • Reviews  quarterly and annual financial reports on performance versus budget;
  • Analyzes  Society's financial strengths and weaknesses;
  • Monitors Society assets including but not limited to its investment portfolio and reserve position;

Engages an independent auditor to review the Society’s financial statements and internal controls.  The Committee receives the auditor’s report and based upon the auditor’s work assures that appropriate accounting policies are followed and internal controls are in place.   
The Committee reviews the financial impacts of new proposals and initiatives as requested by the Board of Directors. 

 

2. COMMITTEE MEMBERSHIP

The Finance Committee consists of seven members capable of providing financial oversight of a complex organization.   Membership includes:

  • Vice President – Finance (Chair);
  • One nominee each from the four Councils with Council-level experience;
  • Two Society members-at-large.
  • In addition to these seven members,
    • The President, President-Elect, and Executive Director are ex-officio;
    • Director of Finance / Controller is staff liaison.

 In consultation with the V.P-Finance, membership is proposed by the Council Vice Presidents, as appropriate, to the President-Elect.  At-large members are proposed by the Vice President-Finance to the President-Elect.  The President-Elect nominates these members for approval by the  Board of Directors.   
Terms of Appointment

  • The Vice President - Finance serves as Finance Committee Chair concurrent with terms of office.
  • To ensure continuity, the other six committee members serve two-year terms up to a maximum of two consecutive two-year terms.
  • Half of the committee changes each year as follows:
    • one member-at-large and CoPA and CoMRA representatives change in odd numbered years
    • one member-at-large and CoPD and CoPS representatives change in even numbered years
    • should a member not complete his two-year term, his replacement will simply serve out the term in order to maintain the integrity of the rotation.

The Finance Committee may establish sub-committees as it deems necessary.  The Vice President-Finance appoints members to these sub-committees and the Finance Committee oversees these sub-committees. 

  • Risk Management Sub-committee is a standing sub-committee (see SOG 6.16).

 

3. MEETING SCHEDULE

The Finance Committee meets as required, at minimum semiannually.
Teleconferences, electronic and written correspondences may supplement face-to-face meetings.
Finance Committee members shall receive an agenda and supporting materials in advance of any meeting. 

 

4. ORGANIZATION ACCOUNTABILITY

The Finance Committee is accountable to the Board of Directors through the Vice President - Finance.
Any sub-committees, if active, are accountable to the Finance Committee.

 

5. OPERATING PROCEDURES

Four or more members of the Finance Committee constitute a quorum.
The staff liaison implements directions and guidelines approved by the Finance Committee, manages daily accounting activities, and reports monthly to the Vice President - Finance and quarterly to the Finance Committee.
The Finance Committee budgets for its own operations, consistent with other Society standing committees.
All issues which require review and approval of the Finance Committee are to be submitted to the Vice President - Finance as soon as practicable prior to each Board of Directors meeting. (At least 21 days in advance of board meeting is preferred)

  • The Finance Committee reviews and responds to such requests as soon as possible after receipt. 

The Society’s Fiscal Year is April 1 through March 31 as defined in the By-Laws. 

 

6. FINANCIAL REPORTS AND AUDITS

The Controller provides the Vice President-Finance with monthly reports on financial results and any action items.  The Vice President – Finance as the Society’s Treasurer reports on the financial condition of the Society to the Board of Directors at each Board meeting and to the House of Delegates annually.  This includes year-to-date performance as compared to budget and the prior year's performance. (See Bylaws VI Sec. 7 (H).)
The Vice President-Finance presents the recommended Society budget to the Board of Directors annually.
Financial Audits

  • The Society retains an independent Certified Public Accounting firm annually to audit the Society’s financial statements, including the balance sheet, statement of revenue and expense, and cash flow statement, in accordance with generally accepted accounting principles.   
  • The Auditor prepares the Auditor's Report, a final written financial statement, and the Management Letter which identifies any issues or deficiencies to be corrected. 
  • The Executive Director, Controller and Vice President - Finance review all auditor proposals and directs appropriate responses.   The Finance Committee reviews with a representative of the audit firm, the Auditor’s report, Management Letter, and any applicable response and assures agreed corrective actions are implemented. 
  • The Board of Directors receives a copy of the Auditor's Report. The report is open for discussion at the Board meeting.
  • The audited financial statements are included in the Society’s Annual Report. 

 

7. RECORD MAINTENANCE AND RETENTION

The Controller maintains records as required by law and generally accepted accounting principles.


Approved By/Date: Finance Committee, Board of Directors: 06/2014

Replaces Edition Dated: 06/2011

Next Revision Due:06/2017

 

 
 

Contact Us

Customer Service (M-F 8:30am - 5:00pm)
+1 847 699.2929

customerservice@asse.org

American Society of Safety Engineers
520 N. Northwest Hwy
Park Ridge, IL 60068